10.3 installs postfix mta on both client and server. I do not know how it behaves if you upgrade an existing system, but if you do a clean install like I did, it will install postfix as the mail server. check out this hint from macosxhints
http://www.macosxhints.com/article.php?story=20031025022626398&query=postfix
That should help you get it runnning for your local mail server.
If you search around the macosxhints.com site, I believe that they mention the what happens when you upgrade, as far as what mail server is used, and how to deal with it.
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